A saying that’s been doing the rounds since ChatGPT took over the internet is that ‘AI won’t replace humans, but humans with AI will’. The rise of generative AI and technological advancements has raised several questions about its impact on the present ‘workforce.

To what extent is the involvement of AI ‘healthy’? How do we continue to give people a key competitive advantage, even as AI becomes more widespread in business? Will AI replace our business leaders?

While the questions are daunting, the answers are comparatively simpler. Leadership is all about making informed and wise decisions in a world brimming with complex data. AI helps leaders decipher these complexities, extracting insights, and providing a clear path forward.

This newfound clarity empowers leaders to make swift and accurate decisions, especially during time-sensitive situations. AI also gives a holistic picture of the business landscape by allowing them to investigate strategic possibilities and identify potential hazards.

Concept of leadership in the context of AI and technological advancements

In the past, computers could only perform predefined tasks — ones for which they were programmed. But computers have advanced too. The emergence of ‘machine learning’ technologies already has widespread business applications.

Southeast Asia is rapidly emerging as a hub for this innovation too. A 2020 study by Kearney, a leading global management consulting firm, had some interesting insights. It showed that 70% of Southeast Asian respondents saw AI as vital to their future and demanded the field’s advancement in the area be sped up.

With the widespread use of AI, Southeast Asia has the potential to gain up to US$950 billion by 2030. This translates to a 10 to 18 per cent increase in GDP.

Also Read: How to drive business innovation with AI-powered data analytics

In this context, AI will be a catalyst when it comes to redefining leadership.

Using advanced AI algorithms, companies can revolutionise leadership development programs. These programs can analyse a leader’s performance, strengths, and weaknesses. They can discover gaps and offer specific learning materials to help them succeed.

Leaders can benefit from a learning experience that is effective and efficient, with a learning path that adjusts to their pace and progress.

However, while computers transcend human ability, great business leaders are set apart by their emotional intelligence.

Evolving role of leaders

In the past, we have seen leadership styles evolve to adapt to the times. We have gone from traditional authoritative management to a more collaborative and coaching-oriented approach. With the emergence of AI, leaders are at the forefront of another transformation. Now, there will be a renewed focus on people management and strategy.

Instead of micromanaging, leaders ought to focus on empowering their teams. In addition to increasing trust, delegating work enables staff members to use their abilities and creativity. Additionally, hearing team members’ opinions encourages a diverse and creative workplace.

The evolving role of leaders hinges on qualities like emotional intelligence, adaptability, and humility. Leaders should realise that leadership is less about having all the answers themselves and more about empowering other people to find the right solutions. Leaders may use AI as a potent tool to promote people management, coach team members, and adopt a more collaborative style, to drive creativity, efficiency, and innovation in the rapidly evolving landscape of the modern workplace.

Opportunities and challenges

Leaders adopting an AI-supported and collaborative approach will see many opportunities and a few challenges. Adopting this strategy can have a significant impact on organisational performance, culture, motivation, and employee satisfaction.

The advantages of such leadership include the capacity to use AI to perform tedious jobs and freeing up people to work on more creative and strategic work. They also can use data analytics to improve decision-making. This can then result in more production, innovation, and overall organisational success. Additionally, encouraging a friendly and cooperative environment can raise employee’s morale and motivation.

Employees feel valued, engaged, and more motivated to give their best to the organisation when leaders place a priority on people management and tactics. Top talent can be attracted and retained through a culture that values collaboration and growth.

However, there are challenges and risks to navigate as well. Employee resistance to change is a common challenge since they may worry about how AI will affect their workflow and job security.

Also Read: Can hyper-personalisation be achieved through automation and AI?

Here are some ways to approach this:

• A transparent discussion of ethical issues relating to data privacy and AI decision-making will give assurance to employees and prevent them from making any rash decisions.
• Leaders must also know that technical glitches and failures can disrupt operations.
• While an AI-supported leadership program might encounter risks and obstacles, leaders must demonstrate adaptability, ethical responsibility, and a commitment to addressing employee concerns in the pursuit of a harmonious and successful workplace.

In conclusion, the changing nature of leadership in the age of AI involves striking a delicate balance between maximising the potential of technology and giving people management top priority. Leaders must create an integrated strategy that recognises the interaction between people and technology to successfully navigate this environment.

Leaders should embrace transparency, include staff in AI-related decisions, and offer thorough training to overcome reluctance. Clear rules, a culture of responsible AI use, and continuing ethical conversations can be used to address ethical quandaries.

Thorough testing and contingency planning can be used to manage technical issues.

Successful firms will be those that maximise the advantages of AI while also hosting a collaborative and creative working culture. The leaders who master this integrated strategy will be designers of a new world where artificial intelligence and human intellect work together to advance society.

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Vietnamese genetic testing company Gene Solutions has received US$21 million in a Series B financing round from Fund IV of local PE firm Mekong Capital, according to a TechInAsia report.

This comes two years after the firm secured US$15 million from Mekong in 2021.

Established in 2017 by Vietnamese scientists, Gene Solutions has developed triSureFirst, a noninvasive prenatal test (NIPT) for detecting abnormalities of chromosome numbers in the fetus, such as Down Syndrome, Edwards, and Patau.

The test, based on detecting cell-free DNA of the placenta, is released into the mother’s blood to assess the risk of the fetus suffering from birth defects due to chromosomal number abnormalities.

The company claims that triSureFirst’s positive predictive value is 94 per cent for all three syndromes.

Also Read: Ex-Zalo executives’ proptech startup Rever snags US$10.2M from Mekong Capital

Since 2018, Gene Solutions claims to have made accurate tests accessible to over 500,000 pregnant women, helping over 65,000 pregnant women avoid unnecessary amniocentesis.

The startup has a presence in Thailand, the Philippines, and Indonesia. It also expects to open an oncology laboratory in Singapore in November 2023.

Established in 2001, Mekong Capital invests in private Vietnamese companies. Its latest fund, MEF IV, with a fund size of US$246 million, focuses on retail, education, restaurants, consumer services, FMCG, and health care. Its portfolio companies include Entobel, Marou, Mutosi, HSV Group, LiveSpo Global, and Rever.

In March this year, MEF IV completed an investment of US$20 million in F88. In May 2023, Reuters reported that Mekong Capital is looking to build a climate fund worth up to US$200 million as early as next year.

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The world is facing a multi-crisis environment that could persist for the foreseeable future. But instead of being overwhelmed by pessimism, entrepreneurs seek creative methods to resolve the environmental, social and economic issues posing obstacles to society at large.

Impact entrepreneurship, as it is known, is one of the “most meaningful” ways through which scalable solutions can be attained to solve some of these challenges, says EQT Foundation CEO Cilia Indahl.

“At the Foundation, we believe that entrepreneurship can be a key driving force in helping to solve some of the pressing challenges our world is facing today,” she says in an interview with The Edge Singapore.

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The Scaleup Report by Startup Genome that was launched today in Melbourne revealed the three key factors that founders who look to improve their chances of scaling should ensure: Offering stock options for all employees, owning more than five global connections to top ecosystems, and having at least three advisors for their startup.

“Scaleup success rate clearly increases with Global Connectedness and startups that develop a high level of Global Connectedness have a 3.25x higher chance of scaling than those with a low level,” the report detailed.

“Ecosystems that are more connected to top global ecosystems (such as Silicon Valley, New York City, and London) see their startups go global at a much higher rate on average (66 per cent correlations between those very distinct variables).”

Despite the importance of connectedness on a global level, this did not mean that local connectedness did not play a role. The Local Connectedness Index measures the size, density, and quality of a startup’s local network, and it impacts a startup’s ability to scale.

“Startups with a Local Connectedness Index score of six or above achieve a scaleup of 5.1 per cent compared to 3.8 per cent for those with a score of two to four, a 34 per cent boost. Early-stage startups with a higher Local Connectedness Index see their revenue grow twice as fast as those with the lower Local Connectedness Index,” the report said.

Also Read: TikTok vs Shopee EC war in SEA: How can startups leverage the competition?

In addition to Startup Genome’s own research and dataset on startup ecosystems, the report also received contributions from experts such as the Global Entrepreneurship Network and Dealroom.

It provides insights into the characteristics that separate startups that successfully scaled from those that failed and highlights actionable insights for entrepreneurs, enterprise support organisations, and policymakers seeking to increase the proportion of startups scaling to a US$50 million+ valuation.

Factors that help startups to scale up

In addition to access to collaboration with local and global ecosystems, the report also looks at the countries with a significant number of “scaleups”–startups that have achieved significant milestones in their scaling-up journey.

“The US, China, and the UK are the top countries by number of total scaleups, with 7,100 based in the US—4.8x more scaleups than in China and 11.5x more than in the UK. India, Canada, Germany, Israel, France, South Korea, and Singapore (in order), round out the top 10 countries globally for the number of scaleups,” the report said.

“Top countries for VC investment into scaleups are the US, China, India, the UK, and Germany. North America makes up 55 per cent of all global VC investment raised in scaleups, with the US alone contributing 53 per cent. Since 2020, the US has received more VC investment than the rest of the world combined.”

Also Read: Sustainable farming, supply chain traceability startup Koltiva raises Series A funding

The report also said that for early stage startups that go global, they are on a revenue growth curve that is 2x faster than those that do not.

“For non-US startups that target the global market first, the scaleup rate doubles,” the report highlights.

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Speaking to e27 before a panel discussion at the recent Forbes Global CEO Conference 2023 in Singapore, Alpha Intelligence Capital Co-Founder and Managing Partner Antoine Blondeau revealed that the firm is on its way to closing its latest fund, which is targeted to happen in 2024.

“We are sort of halfway through the race right now. We already closed about US$20 million but are about to close more. It is targeted at US$300 million plus, so it’s quite significant,” he said.

Having a presence in the US, Europe, and Asia, Alpha Intelligence Capital intends to invest 10 per cent of the upcoming fund in Asia, where the firm sees great potential for AI technology. Its portfolio consists of notable names such as AI Music (acquired by Apple), Reaqta (acquired by IBM), and Instadeep (acquired by BioNTech).

Blondeau himself is not a new face in the world of AI. He was the CEO of Dejima, the company that powered DARPA’s foundational CALO project that evolved into Apple’s Siri, and COO of Nasdaq-listed Zi Corporation, whose predictive text input software was embedded in hundreds of millions of devices.

In this conversation, we are looking into the present and future of AI in Southeast Asia, from the challenges to the opportunities. The following is an edited excerpt of the conversation.

Also Read: How Transparently.AI uses Artificial Intelligence to detect accounting manipulation, fraud

Everybody is talking about Gen AI today. But where do you think this trend is going?

Historically, machine learning was very good at solving things such as perception. So, you could perceive very well, or you could detect a tumour on a CT scan or MRI. It was also very good at optimisation; you could do price optimisations, logistics functions optimisations … But the cognition piece, which is critical to human decision-making, was not yet solved. Things such as being able to understand a question in context and being able to make sense of what is being perceived.

Gen AI is beginning to solve that. It is the first time ever that we see a non-human intelligence being able to close the loop fully; not just perception, optimisation, but also cognition.

To me, it’s just the beginning. We’ll still be talking about this in 10 to 100 years and beyond.

How do you envision this AI is going to be used in the future, within the next two to three years?

Historically, AI was about a few developers building it for a few users, which are mostly business users. But now, this can be built and consumed by many. That is a big difference.

We see a lot of interest in healthcare. We see a lot of interest in cybersecurity, enterprise software, and all the functions of a company from HR to IT services management, even down the road to accounting, legal to resource optimisation.

Whether it’s B2B or B2C … those are critical aspects where we see AI becoming more and more important and being adopted.

Also Read: RevComm’s MiiTel, Cloud IP phone powered by artificial intelligence, is changing how businesses engage customers

How about Southeast Asia? Is there any particular trend that is happening?

Historically, human talent in the AI space had some amount of critical mass in the Bay Area, London, and Tel Aviv. The requirement for deep talent is less obvious. What you really need is people who can understand how to use it. And also understanding the underlying aspects of the technology well enough to be able to cover for the pitfalls of it. So, the barrier to entry is coming down. And as a result, adoption can be broader, and interesting companies can be built anywhere.

Obviously, in Southeast Asia, Singapore has been the country where there has been more attention paid to it.

In our last fund, we actually invested in a Singapore company in the cybersecurity space, which we were able to sell to IBM. There will be a number of companies like this in Singapore and the region, but I think the opportunity is a lot more for large enterprise-type businesses.

The banking, logistics, and airline industries have begun to adopt it as well.

One thing that Gen AI is doing is pushing cloud consumption dramatically. Because it is like taking a slice of our biological brain and putting it into the cloud; essentially, that is what happening. It drives cloud consumption, which in turn is drive the demand for underlying hardware. Countries that are semiconductors manufacturing countries can benefit from it. It is clearly the case for some countries in Southeast Asia.

Last but not least, countries in Southeast Asia that have young populations, such as Indonesia, [have great promise for AI use].

For large enterprises, what are their main challenges in incorporating AI into their operations?

First is understanding what it can do. I think there is a big educational aspect there.

Also Read: Will China lead the Artificial Intelligence game by 2030?

Second is internal resistance because there is a lot of misconceptions and misunderstanding as to whether this is going to replace jobs. And I think there are also some legitimate concerns. So, being able to understand and assuage concerns is an important deliverable.

The third aspect is that when companies implement AI, they have to marry the technology aspects with deep domain expertise. So [they have to] organise project teams where the expertise is present.

When it comes to regulations and innovation, there is always that concern about it stifling creativity for the sake of security. So, where do we find a middle ground?

The middle ground is always to try and try; you can create things like sandboxes. Whether it is in finance or healthcare, you enable sandboxes so that you foster a certain amount of innovation that is somewhat controlled in terms of its distribution. Then once you cross the bridge of demonstrating value in a context where it is not detrimental to the user and societal fabric, then you proceed.

It is always easier to do when a country is small, where the stakeholders are few. So Singapore is always very well-placed to put that in place.

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Singapore’s transition into a technologically advanced nation has been nothing short of spectacular. The streets, gleaming with advancements, tell tales of the country’s leap into the digital era.

However, with this swift embrace of technology, we have found ourselves in the midst of a cyber battlefield where Critical Information Infrastructures (CIIs) remain paramount to our national functioning.

I recall a conversation with a young entrepreneur poised to digitalise his family business. His enthusiasm was palpable, but he couldn’t help but express his concerns about the emerging cyber threats. This is the paradox of our time: while technology opens up doors to vast potential, it concurrently ushers in unprecedented challenges.

A particularly disconcerting threat is the supply chain attack. Here, the enemy is not knocking on the front door but sneaking in through the back. They exploit trusted vendor relationships to infiltrate customer environments. It’s the digital equivalent of a Trojan Horse strategy, and Singapore’s intricate CII networks are notably vulnerable.

Recognising this, Singapore introduced the CII Supply Chain Programme, a beacon of hope designed to empower and safeguard our cyber realm. But what does this entail for stakeholders?

The Programme delineates five initiatives:

• CII Cyber Supply Chain Assessment Toolkit: Imagine giving CIIOs a pair of technologically advanced glasses that allow them to visualise cyber supply chain risks, extract insights, and offer real-time transparency to multiple layers.
• Cyber Contractual Handbook for CIIs: This becomes the “rulebook”. It ensures CIIOs can confidently negotiate contracts with vendors, ensuring stringent cybersecurity practices.
• Vendor Certification Programme: A proverbial stamp of approval. It ensures that vendors step up to the plate, meeting and exceeding security benchmarks, driving them towards optimal cybersecurity hygiene.
• Cyber Supply Chain Learning Hub: Knowledge is the weapon of the 21st century. This hub fosters the sharing of intelligence, bridging skill gaps, and raising cybersecurity awareness beyond just IT departments.
• International Cooperation: This positions Singapore on the global cybersecurity stage, collaborating with international partners to create a united front.

Also Read: #dltledgers unveils 2023 trends in supply chain digitisation

These initiatives are not merely administrative directives; they reflect a collective aspiration. They challenge stakeholders to rally together, pushing for Singapore’s resilience against cyber adversities.

In the midst of this transformation, I often ponder about the tools and systems that can aid this ambitious endeavour. One such solution is IMMUNE X-TPRM by Responsible Cyber. As cyber threats diversify, IMMUNE X-TPRM offers a holistic approach, facilitating third-party risk management. It’s akin to having a trusted general on the battlefield, guiding the troops to ensure robust cyber defence strategies.

As someone deeply entrenched in the cybersecurity domain, I believe that the human element is as critical as technological advancements. Behind every code, firewall, or system, there’s a person with hopes, fears, and aspirations. It’s these very emotions that drive us towards creating a cyber environment where technology serves humanity, not the other way around.

To every stakeholder, from CIIOs to vendors, this is a clarion call. We’re not just safeguarding systems or data; we’re preserving our way of life, our dreams, and our future. The CII Supply Chain Programme is not just a national strategy; it’s a testament to Singapore’s vision, resilience, and commitment to staying ahead in the cyber age.

In closing, I urge organisations and individuals alike to delve deep, understand the essence of these initiatives, and actively participate in our collective journey towards a secure cyber future.

Let’s march forward, with determination and unity, into a digitally secure dawn!

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In this piece, we spotlight several startups riding the waves of social and live commerce in Southeast Asia while leveraging the war that is going on between TikTok and Shopee. For my Founder readers, I hope you can bring some good takeaways from this article.

E-commerce battle heats up: TikTok and Shopee amp up investments

Shopee has been focusing on profitability, turning EBITDA-positive since the 4th quarter of 2022. After three quarters of focusing on efficiency, in their latest earnings call in August, Shopee stated that they “believe now is the right time to start re-accelerating our investments in growth“. Shopee is willing to risk their bottom line again and is prepared for this to “result in losses“. This is certainly a clarion call made in response to TikTok’s aggressive expansion in the region.

Over the past 12 months, TikTok has become the third-largest e-commerce player in major markets in the region. In Indonesia, TikTok is keeping Bukalapak and Lazada on their toes. Although TikTok is setting a target to unseat Lazada by the end of 2022, achieving this goal won’t be easy. In response, Lazada plans to utilise a fresh injection of US$845 million to bolster its infrastructure and enhance merchant services, aiming to safeguard its market position.

Not to mention Temu’s latest move to land in the Philippines, the competition is certainly intensifying, signalling increased investments and funding throughout the value chain. Unlike the previous “growth-at-all-costs” approach, these giants are now more likely to focus on investing in essential elements that support long-term structural growth, such as improving product quality, service quality, and content quality. These areas present significant opportunities for startup founders as well.

Opportunities in product quality: Leveraging the manufacturing capabilities in Southeast Asia

In Southeast Asia, the Average Order Value (AOV) on major e-commerce platforms hovers between US$5-10, a stark contrast to China’s US$15-50 and Taiwan’s US$50-70. Increasing wallet share from consumers and elevating the AOV are top priorities for these platforms.

One approach to addressing this issue is to diversify and improve the quality of product offerings. While more than 70 per cent of products sold on Shopee and TikTok come from domestic manufacturers, a TikTok Southeast Asia team member we spoke with mentioned that “the majority of domestic product quality simply doesn’t measure up to that from Chinese cross-border sellers.”

Echoing this sentiment, a Shopee Business Development team member stated, “The biggest advantage for local makers now lies in fulfilment speed and cost, but in terms of product quality and even cost structure, Chinese manufacturers remain highly competitive.” Indeed, we reviewed top individual sellers on both TikTok and Shopee, and it shows that most source their products from China.

This gap creates a unique opening. As Southeast Asian governments strive to protect their local economies and manufacturing sectors, demand for higher-quality local manufacturers will inevitably grow. In this landscape, the timing is ripe for new waves of local manufacturers and product brands to establish themselves as essential players. Furthermore, any tech startup that can facilitate this transition is also well-positioned to seize significant opportunities.

Also Read: Decoding the shift: The new era of B2B marketing

Inflow, an HCM City-based startup, is seizing this moment. Founded in April 2022, Inflow connects global fashion brands to Vietnamese apparel manufacturers. They don’t simply help the brand customers to connect, but in fact, guide the local producers on how to improve product quality, fulfilment rate, and even the design and R&D process.

Khanh Lê, the Founder and CEO, noted, “Global big brands have achieved their success due to the robust apparel manufacturing resources in Vietnam and Southeast Asia. However, there isn’t yet a tech platform that can unlock this potential for brands of all sizes worldwide. That is our mission.” 

Opportunities in service quality: How to help merchants make more money

Many services on e-commerce platforms could be enhanced, not least of which is logistics infrastructure—a sector that key players are heavily investing in. (A recent Tech in Asia article has some in-depth discussion on this.) Another avenue to explore is how these platforms can boost merchant profitability. Both Shopee and TikTok are expanding their affiliate programs, with TikTok’s Project S also moving in this direction.

Drawing from our experiences in Taiwan, where the e-commerce industry is a decade ahead of Southeast Asia, provides valuable insights. For instance, 91APP (AppWorks portfolio), a leading online store platform now publicly traded on the Taiwan Stock Exchange, achieved early success by assisting merchants in not only opening online stores but also leveraging powerful marketing tools across major social media channels and offline solutions.

While many startups are striving to help online merchants and influencers earn more money on TikTok, one common challenge emerges: marketing effectiveness. There’s still a strong nature of impulsive purchasing on TikTok, marketing results tend to be more unpredictable and sporadic.

Partipost (AW#23, Pre-Series B in 2022) has expanded its presence to six markets in Southeast Asia. They offer a mobile app that allows influencers to effortlessly sign up for marketing campaigns posted by social commerce merchants. From its inception, Partipost established itself as a regional startup, simultaneously opening in three markets: Indonesia, Singapore, and Taiwan.

Tony Jen, the Co-Founder of Partipost, remarked, “Astute brand owners and merchants recognise the importance of curating and retaining the influencer community for the long haul. Relying solely on a single platform can be precarious. Partipost’s platform is specifically crafted to assist these savvy business owners in cultivating enduring brand ambassadors and audiences. Then they can deploy better strategies on all major social platforms, including TikTok.”

Opportunities in content quality: Top influencers in Southeast Asia are not that top; content quality is way early in this region

Supporting merchants and influencers is paramount, especially considering the nascent state of content quality. For perspective, in Singapore, a mere 10 million followers can rank an account in the top 3, while in Vietnam, Indonesia, and the Philippines, this count would place one within the top 10.

However, on a global scale, even 50 million followers wouldn’t guarantee a spot in the top 20. On the top merchant side, examining the top accounts, many employ a basic and straightforward selling strategy, evoking memories of traditional TV shopping channels.

Furthermore, a significant number of these top merchants are linked to Chinese parent companies. When we examine the TikTok ecosystem in Southeast Asia, there are only a few local vendors, most agencies are still from China.

Central to social commerce is the intertwining of commerce and culture. As such, two focal points are pivotal: enhancing content quality and tailoring content for local relevance. Hepmil Media Group (Series A in 2021), a Singapore-based startup, epitomizes this trend. They doubled their revenues in 2022 and are on a promising trajectory to continue. Widely recognised for its iconic meme Facebook page, @SGAG, Hepmil has positioned itself as a leading social media content figure in Southeast Asia across six markets. They also own the popular Indonesian meme Instagram account @mrci.id.

Karl Mak, the Co-Founder of Hepmi Media Group, noted: “The creator economy in SEA has entered a captivating era in the past three years. TikTok has given birth to millions of new creators in the region with varied content styles, formats and monetisation opportunities. As the sector continues to ripe, we expect to witness SEA creators develop a unique localised flavour to their content while continuously innovating on formats and styles.

“Brands and business owners would also be presented with new and varied ways of reaching local audiences through a larger supply of creators on the platform. Hepmil’s focus for the next few years will be expanding our regional network through the refinement of our creator incubation strategy to give rise to the next generation of creators that will define culture and captive audiences.”

Navigating e-commerce competition: Tips for startup Founders

The escalating investments from TikTok in this region are intensifying competition within the e-commerce sector. As major platforms redouble their efforts to serve merchants, influencers, and customers, ample opportunities emerge for startups. By nature, a startup must offer solutions that are at least 10x better than what current platforms provide, addressing pain points at a much better scale. Speed is also of the essence; startups must move quickly before established platforms catch up.

Also Read: Tried-and-tested marketing strategies for startups across all stages in Singapore

For startup founders, the key is to seize immediate opportunities without losing focus on the long-term vision: Build your business on a sustainable model with solid unit economics at its core. Prioritise achieving product-market fit over premature scaling or excessive fundraising. Empower your customers rather than simply seeing them as revenue sources.

Furthermore, it’s essential to recognise that most platforms remain predominantly centralised. Echoing the words of Fleire Castro from DashoContent (AW#26) – a content creator platform based in the Philippines: “Investing in content on channels that you don’t own or control will result in wasted dollars. The only thing that business owners own is relationships done through several touchpoints (especially digital). Your social account is just another touchpoint. Be holistic in your approach.”

Indeed, maintaining a cohesive master plan is key to longer-term success. Construct an unassailable moat that is as difficult to breach as it gets. Ride on the waves driven by the e-commerce giants’ rivalry, but navigate on your own terms.

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We have smartphones, smart homes, smart cars, and even smart robot vacuum cleaners. So, why aren’t our cities smarter?

Sadly, our lifestyle is more expensive, environmentally destructive, and inconvenient than it needs to be.

All that may be about to change, however. Malaysia has high ambitions to be one of the leaders in the global smart city movement, even though that is easier said than done.

Technology, meet city

But first, what is a smart city?

Creating one is a simple equation: technology + city = better life.

In Malaysia, the Smart City Framework aims to use technology to address issues such as inefficient urban services, environmental pollution, and traffic.

Sometimes, visionary elites try to create new smart cities where there isn’t even a town. Last month, we learned that Silicon Valley billionaires have spent US$600 million on empty land near San Francisco for this purpose. Other would-be city founders have talked of sea steading, which means creating floating cities in international waters outside the control of any government.

Rather than a flawless (and unobtainable) utopia, I think most Malaysians would prefer to aim for a “protopia.” That is a society where we make incremental progress over a long period. Your life might not change much over the next year, but it will be dramatically better in five years.

Also Read: Getting smarter with tech: How will smart cities look like 10 years from now? 

In just ten years, smart cities can make our environment healthier, our standard of living higher, and our bank accounts fuller.

Everyone can agree this would be a good thing. So, what is standing in the way? Well, one of the biggest threats to smart cities is cyber-attacks.

The hacker threat

Hackers have disrupted other smart city projects all over the world. Smart cities rely on technology. This tech depends on the internet, giving hackers a way in.

Smart cities increasingly rely on IoT devices to collect and process data, which aren’t always as secure as they should be.

In the United States, hackers shut down a major city’s courts, police, and water systems.

In Ukraine, a cyberattack turned off the lights in a blackout, with over 230,000 victims.

In Asia, hackers have penetrated smart services in Taipei, Mumbai, and Seoul, shutting down metro systems, traffic management, and power supplies.

Thankfully, Malaysia has learned from the hard experiences of others and has put cybersecurity at the heart of its efforts.

Smart Malaysia

Malaysia has fully embraced the idea of using technology to improve the quality of life in its urban areas. Four places in Malaysia are among the 26 Asean pilot smart cities: Kuala Lumpur, Kota Kinabalu, Kuching, and Johor Baharu.

Besides these projects, Selangor has its own Smart Selangor Blueprint.  Cyberjaya and Putrajaya were the first Malaysian cities with 5G technology. Melaka is offering smart electricity metering. And Penang has its own Smart City Blueprint.

The Prime Minister wants the Federal Territories to be smart cities by 2030. He sees a more sustainable and liveable lifestyle for residents, featuring non-polluting electric buses, more CCTVs to ensure safety and traffic management, fewer floods and better water management, and more WiFi in people’s and public housing projects.

We will also see more green energy, reduced waste and pollution, better transit infrastructure, more 5G access, and easier access to health care right in your local community.

In future posts here, I’ll discuss smart cities in more detail. For now, I hope this introduction has you thinking about the possibilities. If you have some ideas, please contact me and share them.

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Singaporean proptech company SIMPPLE provides SIMPPLE Ecosystem, an integrated suite of facility management software, IoT devices, and robotics to empower facility owners and operations managers to streamline their operations. By assigning tasks to human and robotic workforces, the firm aims to ensure quality through IoT solutions and CCTV camera integration.

The company recently listed its shares on the Nasdaq Capital Market under the ticker symbol “SPPL”.

Aloysius Chong, CEO and Co-Founder, sheds light on the IPO, SIMPPLE Ecosystem and its impact on workforce management in building maintenance, surveillance, and cleaning.

Excerpts:

Can you provide more details about the SIMPPLE Ecosystem and how it enhances workforce management in building maintenance, surveillance, and cleaning?

SIMPPLE is an advanced technology solution provider in the emerging proptech space, focused on helping facility owners and operations managers manage their facilities. We do so by having a proprietary ecosystem solution suite comprising facility management software, Internet of Things (IoT) devices, and robotics that are integrated at its core.

The SIMPPLE Software then takes in the workflows and processes that a building requires in the areas of building maintenance, security, and janitorial services, then assigns the task to the human or robotic workforce to handle it while ensuring that quality is maintained through a series of IoT solutions and integration with CCTV cameras.

Also Read: Proptech firm SIMPPLE lists on Nasdaq, looks to raise US$8.4M

This, together with our development in Artificial Intelligence, results in our next-generation Autonomic Intelligence Engine, which we coin as SIMPPLE AI, which leverages capabilities in machine learning, computer visioning, and data analytics to position buildings to be future-ready and equipped with new technologies.

In Singapore, our technologies are found in approximately half of the public schools (209 out of 432 schools), seven private hospitals and four of the six universities amongst our deployment across the various commercial and industrial properties sectors.

Why did you choose the Nasdaq over local bourses?

As we started this journey and charted out our fundraising strategy, we had to consider multiple exchanges around the world that were deemed suitable for our listing. A few considerations were the structure and rules of the exchanges, a brief analysis of the financial performance of respective markets, investors and liquidity on the exchanges, and the technology-friendliness of these exchanges as we are a technology company.

In weighing local bourses and the Nasdaq, we actually considered SGX Catalist Board in our discussions. However, after rounds of discussions and deliberation, the team decided that Nasdaq is the most suitable for us as a fast-growing technology company that plans to internationalise.

Through a global platform like Nasdaq, we can access the capital markets in the US, leveraging its strong liquidity. Being a Nasdaq-listed company also improves our brand visibility so that we can access and attract new talents to support the company’s growth.

With the funds raised from your recent IPO, what specific R&D initiatives and IP strategies do you plan to pursue to develop your technology further?

We intend to further our R&D efforts on SIMPPLE AI and ensure its commercial viability for scale-up implementations and deployments. We live in a world where technology advances very rapidly. We remain committed to trialling new technological methods in applied settings (e.g., computer vision analytics and machine learning).

Could you elaborate on your plans for expanding sales and marketing into overseas markets, particularly in Australia and the Middle East? What is your market entry strategy?

Every geographical market presents expansion opportunities, but each market also presents different problem statements and strategies unique to penetrating abroad. One of our successful go-to-market (GTM) strategies includes a partnership approach when entering these markets.

You mentioned potential acquisitions and strategic investments as a use of capital. Are there any specific targets or sectors you are considering for these investments?

At this moment, we cannot comment much on this question, specifically on targets or sectors. We remain open to identifying potential acquisition options to advance our R&D efforts or support our global expansion.

How do you foresee the adoption of robotics and IoT devices in building maintenance and security evolving in the coming years, and how does SIMPPLE plan to stay at the forefront of this industry?

We are already seeing the prevalence of robotics and IoT solutions across the globe. While we cannot comment on the future of robotics and IoT devices, the future of work and play will involve robots and smart solutions. This may also apply in the facilities management industry as it relies heavily on labour, and labour supply shortage also affects labour costs. Technologies like ours will increase efficiency and streamline workflows to overcome labour challenges and address the concerns of facility owners on accountability and transparency.

With SIMPPLE AI, our next-generation Autonomic Intelligence Engine, the workflows between people, processes and technology are automated using Artificial Intelligence, enabling a building to “take care of itself”.

With the opening of selected satellite offices, how do you plan to leverage local talent and expertise to support your global expansion efforts and provide better service to clients in different regions?

When expanding, we believe in a ‘go global, stay local concept’. On top of understanding local laws and regulations, we believe that culture, adoption, and attitudes towards technology implementation play a big role in our implementation success.

That said, being a Singaporean company with a majority Singaporean workforce, our staff are mobile, and we would certainly explore opportunities for our staff to understand various markets together with their overseas colleagues so that we can bring the expertise and knowledge of a Global implementation and apply it to Local requirements.

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Recharge Capital today announced the appointment of Margaret Wang as its Managing Partner, leading its Women’s Health Strategy. She will lead the firm’s Singapore office and spearhead its operations in the Asia Pacific (APAC) region.

Prior to the appointment, Wang was the former Executive Director and Head of Bridgewater Associates Singapore. She had also served as the firm’s Chief Representative for the Beijing Office, who helped launch its fund in Shanghai.

“I’m thrilled to join the Recharge team and drive value creation across key international markets,” said Wang in a press statement.

“The firm’s thematic strategy is well-positioned to foster innovation and societal impact across the value chain, and I’m excited to tackle the crucial challenges our world faces through our unique approach to investing in and building meaningful businesses.”

Recharge Capital positions itself as a thematic-first private investment firm. In June, it launched a US$200 million women’s health fund backed by the likes of Peter Thiel, The Disney Family, The Olayan Family, and Ian Osbourne.

Also Read: How Singapore became a leading femtech startup hub in SEA

What exactly is the thematic-first approach that Recharge Capital is implementing? What is their vision for the women’s health industry in APAC? Let Wang explain to you in this email interview with e27. The following is an edited excerpt of the conversation.

Can you explain more about the thematic-first approach that your firm is taking?

Recharge Capital takes a differentiated, thematic-first approach to investing focused on deploying capital into specific objectives or key themes. We aim to drive societal and technological shifts rather than traditional sector-based strategies. This thematic-first philosophy has allowed Recharge Capital to carve out regional winners across its core themes of women’s healthcare, fintech democratisation and deep-tech enablement and presents an incredible opportunity to help foster innovation across the value chain.

I will be taking a heavy focus on women’s healthcare. The firm has had past successful investments in the industry, cementing the belief that fertility and women’s health are two of the most profitable sub-sectors of healthcare investing. We’re passionate proponents of increasing access to family planning services worldwide, and we believe that this vehicle will be a crucial driver in its mass adoption.

Why is this better than existing alternatives? How did you come up with this?

The traditional asset management strategy of ‘asset class first, geography second, sector third’ is the general industry standard, yet it remains outdated and doesn’t reflect today’s more complex and dynamic economy. With our restructured strategy, we’ve built an investment philosophy to be ‘thematic first, geography second, and asset class third.’ This allows us to identify cross-sector category winners aligned with our core themes like women’s healthcare, fintech democratisation, and deep-tech earlier than others.

Recharge Capital Founding Partner Lorin Gu has assembled a highly diversified team across the firm’s different thematic strategies to emphasise sector specialisation and generate alpha in both early and late stages. He’s been instrumental in defining our investment thesis and ethos as a firm. The thematic-first philosophy provides an information advantage to spot opportunities of the future rather than looking retrospectively.

Also Read: Femtech: VC interest grows as new frontier for women’s health beckons

Can you explain how you implement this approach in reviewing a potential investment?

Our thematic-first approach involves assessing company fit, leveraging specialised expertise, and making ecosystem-building investments within thoroughly researched themes. This differentiated process gives us an edge in spotting winners.

When reviewing potential investments, we first evaluate alignment with our core themes like women’s healthcare and fintech democratisation. Rigorous market research into each theme allows us to understand addressable market size and growth drivers. Our experts then conduct diligence through the lens of building integrated ecosystems within each theme.

For example, Recharge Capital recently closed the first tranche of its US$200 million Women’s Healthcare Investment Vehicle, backed with funding from esteemed investors. To close this first tranche, we researched the full fertility value chain and selected companies that strategically fit rolling up a comprehensive women’s fertility platform across target regions.

What is your big plan for 2024? Do you have anything specific for Southeast Asia (SEA)?

I’m especially eager to lead Recharge’s Women’s Healthcare strategy, which addresses a growing global issue that remains under-addressed from an investment perspective. By 2045, close to 50 per cent of couples are expected to rely on women’s healthcare services like IVF for fertility, and yet female health conditions totalled just one per cent of pharmaceutical research funding in 2020.

There are nearly 1.5 million annual IVF cycles in Asia alone, with China exporting ~500,000 cycles to other countries. There is tremendous demand for medical tourism related to family planning and women’s health, and Recharge Capital is funding a network of clinics through Generation Prime to satisfy this demand with cost-effective and cutting-edge services.

Also Read: Overcoming advertising woes and other challenges for the femtech industry

The serviceable market for IVF and related treatments in Singapore is around US$350 million. If you take into account all of SEA, the hubs for IVF services are mainly in Singapore, Malaysia, and Thailand – serving across the entire SEA markets, it goes up to almost US$11 billion. This is just for fertility. If you take IVF plus other women’s health needs, it can get close to US$48 billion in market size, and this is only in SEA.

What are your targets for 2024?

For 2024, my primary focus will be on international fertility access and medical tourism, menstrual wellness, and women’s disease prevention as part of Recharge’s Women’s Healthcare strategy. Recharge Capital aims to transform the sector by creating a full-scale integration of disruptive technologies, diagnostic solutions, and seamless patient experiences through digital platforms and local clinic chains.

Recharge’s thematic model has improved family planning to be a holistic, all-encompassing, and long-term approach, and its clinics like Generation Prime ensure that patients in Southeast Asia have access to the most robust fertility services from the onset.

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Image Credit: Recharge Capital

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